Google uses a complex anonymization/privacy framework to collect some aggregate signals from website visits, but they don't use it directly.

Regulators don't understand this, and technologists who do tend to distrust Google anyway and think they might secretly be using it.

There are all sort so other sketchy things, like what Edge does injecting itself into websites so Microsoft collects affiliate revenue.

There are countries where this wouldn't be allowed, but Google is largely self regulating in its biggest market.

All this would lose Chrome some market share but they are starting from a very dominant position, and for the general public it wouldnt be a big deal - people are already convinced that iOS and android devices are listening to them at all times for ad targeting!